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Cash Vs Annuity Payments

Topic closed. 98 replies. Last post 5 years ago by rdgrnr.

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well..... Would you rather take the payments or the cash option?..feel free to explain why....

Annuity Payments [ 13 ]  [15.12%]
Cash Option [ 73 ]  [84.88%]
Total Valid Votes [ 86 ]  
Discarded Votes [ 2 ]  
LottoGuyBC's avatar - Lottery-050.jpg
British Columbia
Canada
Member #116101
September 4, 2011
4033 Posts
Offline
Posted: February 11, 2012, 8:29 pm - IP Logged

cashClown

I like Cash too

Bed

"You have to be in it to win it!"

    mrsinful's avatar - gambling problem.jpg
    South Carolina
    United States
    Member #66774
    November 5, 2008
    319 Posts
    Offline
    Posted: February 11, 2012, 9:22 pm - IP Logged

    I like Cash too

    Bed

    Amen to that. I will take thecash and then buy as many books of scratchers

    as I can. Then I will finally hit a 1000 on a ten dollar ticket. (They won't be in South

    Carolina though).I will do this after I get Britney Spears to sing at my celebration

    party.

    Rehab is for quitters.

      Bigheadnick's avatar - badluck
      Taunton, Ma
      United States
      Member #123005
      February 11, 2012
      136 Posts
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      Posted: February 11, 2012, 9:26 pm - IP Logged

      Take the money and run. We can't even be sure the world doesn't come to an end in 20 years, nevermind the state being able or willing to pay out for that long. There's just no guarantee, you'll see it all. I would ABSOLUTELY TAKE THE CASH OPTION.

        rcbbuckeye's avatar - Lottery-043.jpg
        Texas
        United States
        Member #55889
        October 23, 2007
        5592 Posts
        Offline
        Posted: February 11, 2012, 10:16 pm - IP Logged

        "I have a structured settlement and I need cash NOW!!!".

        The way the economy is going, there's no guarantee the money will paid over 25 or 30 years.

        On the other hand, there's no guarantee the the dollar is going to be worth a penny either when you have taken the cash.

        CAN'T WIN IF YOU'RE NOT IN

        A DOLLAR AND A DREAM (OR $2)

          dk1421's avatar - Lottery-024.jpg
          North Carolina
          United States
          Member #64582
          September 1, 2008
          347 Posts
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          Posted: February 11, 2012, 10:44 pm - IP Logged

          In truth, my state has taken the lottery money designated for schools, and used it for other things. Who is to say they won't take the money you won in the lottery? And yes, it's illegal, but I'm sure they could find a way around it. They figure, you've gotten a few payments, you should be able to live on that.

          I'd take the cash. 

          I'm not a conspiracy theory person, but the older I get, the less I trust politicians.

          "Don't be a schmuck, always take the cash." -Coin Toss

            s5thomps's avatar - Lottery-033.jpg
            Hard Luck, Ak
            United States
            Member #23472
            October 13, 2005
            275 Posts
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            Posted: February 12, 2012, 3:44 am - IP Logged

                For me it depends on the amount and the age at which you win. If you are in you late teens or earlier twenties I would suggest taking the annuity. I know how I was at that age and at least if you blow your money those first couple of years at least you have an annuity coming for the next 20 yrs or so. Also I would suggest that you never sell your future payments to those brokerage firms you will end up being broke in no time. If you are 35 or older I would take the cash option and purchase my own annuity through a reputable investment firm such as Edward Jones or Merrill Lynch. Also you should make sure that you set aside enough money to cover your taxes. For example if you were to win a 12 million dollar California jakpot the cash option on that money is currently 8.3 million. Then count on at least 25% from the cash option amount netting you about 6 million. But wait......there's more, you will still owe money at the end of the year when you pay your taxes because you are now in the 35% tax bracket as far as the I.R.S. is concerned. Although you get the the 6 million up front the actual amount you net after paying your taxes at the end of the year is apprx 5.3 million.  That being said I would set aside at least 35-45% of the cash option for investments and to cover my tax liability. That would still leave you approx 3.5 million to do as you please. At least that's how I would do it. Just hope that one day I can exepierence the shock of winning a jackpot for myself. Like most people there is nothing like having financial security and if I was to win I would never jepordize it by being foolish with a "once in a lifetime opportunity."

            "We make a living by what you get, You make a LIFE by what you give!"

                                                                           Sir Winston ChurchillSun Smiley

              Coin Toss's avatar - shape barbed.jpg
              Zeta Reticuli Star System
              United States
              Member #30470
              January 17, 2006
              10348 Posts
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              Posted: February 12, 2012, 3:13 pm - IP Logged

              dk1421,

              Not just North Carolina gets 'creative' with lottery money supposedely going to schools. It's common for states to claim 'Lotto bux for education' and put them in the school system and take out an equal or greater amount somewhere else in the school system. They just make it look like it's going to the schools.

              PS

              A long overdue thanks for the sig reference.

              Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

              Lep

              There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

                CDanaT's avatar - tiger avatar_04_hd_pictures_169016.jpg
                TX
                United States
                Member #121193
                January 4, 2012
                1637 Posts
                Offline
                Posted: February 13, 2012, 12:40 pm - IP Logged

                oh not me...I want the annuity so I can pay potentially less taxes on it for years to come cause our government is so effecient and theres no doubt that the tax rate for millionaires will definitely be less in the future 29 installments.....Boy, if that statement cause projectile vomiting............
                SHOW ME THE CASH RIGHT NOW  !!!!!
                 Razz

                Stay Positive, Believe and good things will come your way

                  Avatar
                  New Member
                  ny, ny
                  United States
                  Member #123103
                  February 13, 2012
                  20 Posts
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                  Posted: February 13, 2012, 7:37 pm - IP Logged

                  I would do half and half.

                    rdgrnr's avatar - walt
                    Way back up in them dadgum hills, son!
                    United States
                    Member #73904
                    April 28, 2009
                    14903 Posts
                    Offline
                    Posted: February 13, 2012, 10:29 pm - IP Logged

                    Dear Jackpot Winner,

                    Please be patient while the temporary restraining order on the disbursement of your annuity funds is in effect during this national emergency.

                    This will coincide with the temporary suspension of the Constitution and Bill of Rights.

                    The sundown till sunup curfew will remain in effect until the rioting stops and the lawless roving bands of militia are disarmed and executed.

                    Unfortunately, I have found it necessary to cancel all elections until my new secret police can guarantee security and fair elections at some time to be determined.

                    Please coperate fully with the house to house searches for guns and enemies of the state.

                    Report any suspicious activity at once to your local Democratic Committee Office.

                    Thank you for your obedience,

                    President for Life,

                    Barry Hussein Soetoro/Obama

                    ------------------------------------------------------------------------

                    Uhh... I'll take the cash.


                                                                 
                                         
                                                             

                     

                     

                     

                     

                                                                                                                       

                    "The only thing necessary for evil to triumph is for good men to do nothing"

                                                                                                                --Edmund Burke

                     

                     

                      kyokushin187's avatar - evildead2
                      cornwall,ct
                      United States
                      Member #102636
                      December 23, 2010
                      245 Posts
                      Offline
                      Posted: February 13, 2012, 11:34 pm - IP Logged

                      Unless someone recruited a bunch of people the skew the results, do you think a daily poll would come out any different than the consensus thus far?

                      mjwinsmith,

                      Well, there is 12-21-2012 to get past,you know, the Mayan stuff.

                      "I'll take the annuity"

                      "Are you sure, the asteroid is going to impact within 24 hours"

                      ____________________________________________________

                      "If I knew the world was going to end tomorrow, I'd go plant a tree

                      -Martin Luther

                      He should have been sent right to a rubber room for saying that!

                      Jester Laugh

                      why should he have been sent to a rubber room? oh  I shouldn't ask. I already know the answer to that.

                        Coin Toss's avatar - shape barbed.jpg
                        Zeta Reticuli Star System
                        United States
                        Member #30470
                        January 17, 2006
                        10348 Posts
                        Offline
                        Posted: February 14, 2012, 6:36 pm - IP Logged

                        Dear Jackpot Winner,

                        Please be patient while the temporary restraining order on the disbursement of your annuity funds is in effect during this national emergency.

                        This will coincide with the temporary suspension of the Constitution and Bill of Rights.

                        The sundown till sunup curfew will remain in effect until the rioting stops and the lawless roving bands of militia are disarmed and executed.

                        Unfortunately, I have found it necessary to cancel all elections until my new secret police can guarantee security and fair elections at some time to be determined.

                        Please coperate fully with the house to house searches for guns and enemies of the state.

                        Report any suspicious activity at once to your local Democratic Committee Office.

                        Thank you for your obedience,

                        President for Life,

                        Barry Hussein Soetoro/Obama

                        ------------------------------------------------------------------------

                        Uhh... I'll take the cash.

                        Excellent post, Ridge, and not that far fetched.

                        Let's see, just for one thing, the fans of the hammer and sickle detest property ownership in any form, cars, houses.........gee, what does everyone think all the foeclosures are about?

                        And let's see, what else? Oh yeah, czars...gee the root word of the Rusdian woird czar is...caesar!

                        Those who have ears, let them hear.

                        If there was ever one solid argument for cash your post above should be it.

                        Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

                        Lep

                        There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

                          rcbbuckeye's avatar - Lottery-043.jpg
                          Texas
                          United States
                          Member #55889
                          October 23, 2007
                          5592 Posts
                          Offline
                          Posted: February 14, 2012, 9:23 pm - IP Logged

                          Excellent post, Ridge, and not that far fetched.

                          Let's see, just for one thing, the fans of the hammer and sickle detest property ownership in any form, cars, houses.........gee, what does everyone think all the foeclosures are about?

                          And let's see, what else? Oh yeah, czars...gee the root word of the Rusdian woird czar is...caesar!

                          Those who have ears, let them hear.

                          If there was ever one solid argument for cash your post above should be it.

                          Amen and amen!

                          CAN'T WIN IF YOU'RE NOT IN

                          A DOLLAR AND A DREAM (OR $2)

                            ThatJoeVArmint's avatar - nw dwarf.jpg
                            New Member
                            Virginia
                            United States
                            Member #123115
                            February 13, 2012
                            1 Posts
                            Offline
                            Posted: February 16, 2012, 4:18 am - IP Logged

                            I'll take the $$$CASH$$$! While I've seen financial articles for and against the cash option, the one I thought made the best sense was one I read last year (can't recall where...darn)What?. The person writing the article was a financial planner who pointed out that since most lotteries use government notes (bonds)Patriot to earn the money for annuity payments (they currently earn around 3% annually, I believe), it would be the wisest, and lowest risk choice to take the cash option, pay off any and all outstanding bills (mortgage, car loans, student loans, unsecured debt, etc.), set aside a REASONABLE amount to live on and make RESPONSIBLE purchases with, and then use the majority of the money as investment "seed money". There are quite a few options for investing that will yield as much or in some cases more money over the course of 26+ years, versus the annuity option. So....that's the way to go, IMHOCool, and as such, that's exactly what I WILL do WHEN I hit the big one ANY DAY NOWWink

                              Avatar
                              East of Columbus, OH
                              United States
                              Member #120843
                              December 28, 2011
                              447 Posts
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                              Posted: February 16, 2012, 8:04 am - IP Logged

                              $CASH$  is KING!Cool  I already have a plan.  Payoff bills, help out family and friends and continue to live pretty much the same lifestyle, with a few upgrades.  I don't need to travel, I enjoy living in a quiet place.  I would spend more time with my parents.

                              Life's Too Short To Be Unhappy Cool